If there is one thing online dating has taught us, though it may make it easier to start a relationship, breaking up is still hard to do!
We encounter it often. Clients go through The Stash Plan™ process and want to work with us going forward except they are afraid to break it off with their old advisor for fear of upsetting them. So how do you break up with your current financial advisor in a few quick and painless steps? Here’s what we recommend:
1. Remember, it’s a business relationship
If you don’t have a specific advisor where your accounts are currently held (like at a Betterment or Merrill Edge), you don’t need to do anything. If you do have a specific person you’ve been working with, it’s natural to feel awkward. However, your current advisor is used to clients leaving for a multitude of reasons. They will be less offended by it than you think. So don’t stress too much. It’s common and doesn’t mean you don’t like them as a person. You just picked a business relationship that better suited your needs.
2. It’s not you, it’s me
Be nice. You can either call or email your Financial Advisor – but let them know you are going to be moving your accounts. Your new advisors will actually do all the work in moving the accounts for you, but it’s nice to give the old advisor a head’s up. A simple email like this would work great…
“Hi (Advisors Name) I want to thank you and express my appreciation for all your help over the past few years with my investment accounts. At this time, I’ve decided though to move my accounts to another institution that I feel is a better fit for me going forward. I wanted to notify you as you should be receiving the transfer requests shortly.”
3. Trust your gut
That’s it…Like ripping off a Band-Aid, just do it quickly. Your new advisor will notify your old firm of your intent to transfer the accounts and they will automatically be moved to the new firm. All your interactions at this point forward will be with your new advisor. Remember, it’s your money and you need to do what’s right for you. Like a bad relationship, staying in it because you want to avoid the breakup can only make things worse.